Over a month after receiving the Payment Aggregator-Cross Border (PA-CB) licence from the Reserve Bank of India (RBI), fintech major Razorpay has now secured the Payment Aggregator – Physical (PA-P) Licence from the apex bank.

In a statement, the IPO-bound startup said that the licence would allow its offline payments vertical, Razorpay POS, to support high-volume, in-store payments for businesses operating at any scale. 

Razorpay POS already offers products like mPOS devices, smart POS machines, and soundboxes for merchants seeking offline payment solutions. With this regulatory approval, it will now be able to further expand its offerings in the space. 

Important to highlight that the fintech startup’s application for the cross-border payments licence received regulatory clearance just last month, enabling its clients to accept payments in global currencies across a range of payment methods in India. It was also among the early recipients of the PA licence from the RBI in December 2023.

“In-store commerce continues to power a large part of India’s economy, and building payment infrastructure for it begins with trust and regulatory alignment. For us, regulation isn’t an afterthought; it’s core to how we build. Securing the RBI’s Offline Payment Aggregator License further strengthens our ability to support businesses with scalable, compliant in-store payments as they expand their omnichannel presence,” Razorpay’s cofounder and managing director Shashank Kumar said

The RBI has been on a spree of granting the three key PA licences — online, offline and cross border — in recent months. Several fintech companies including Paytm, Pine Labs, PhonePe, PayU, Mswipe, Airpay, among others have received all three clearances over the past few months. Holding all three PA licences allows fintechs to offer end-to-end payment acceptance across channels, strengthening compliance while unlocking larger merchant and enterprise opportunities.

Razorpay, founded in 2014 by Kumar and Harshil Mathur, offers a full-stack payments and financial services platform, spanning payment acceptance, disbursals, lending and business banking for more than 8 Mn businesses. Over the past decade, the fintech major has broadened its portfolio with products such as RazorpayX for neo-banking and Razorpay Capital for lending, while also integrating with government-led initiatives like ONDC.

Founded in 2014, the startup has raised over $816 Mn to date and is backed by marquee investors including Tiger Global, Peak XV Partners and Lightspeed.

The company aims to follow peers like Groww, Paytm, and Pine Labs by going public soon, with its IPO anticipated to materialise this year. 

As per reports earlier this month, the company’s IPO will comprise a fresh issue of shares worth INR 4,500 Cr. merchant bankers, including Kotak Mahindra and Axis Capital, have bid to helm the public issue.

As part of its IPO plans, Razorpay has transitioned into a public limited company and redomiciled from the US to India last year. The move resulted in a one-time tax expense, leading to a net loss in FY25, even as the fintech’s operating revenue jumped 65% to INR 3,783 Cr. Earlier, CFO Arpit Chugh told Inc42 that Razorpay’s India business is expected to turn solidly profitable in FY26.